How Quickly do Creditors Start Collection Efforts?
If you have fallen behind on paying your bills, you are probably wondering how soon your creditors will start their collection efforts against you. The answer depends on your creditor and the type of debt you have, but this blog provides you some general guidance.
As soon as you begin missing payments on a debt or even when you make late payments, your creditor can report the activity on its account on your credit report. A creditor or a debt collector does not have to wait 30 days before reporting the debt to the credit reporting bureaus. The 30 day period is the time in which a consumer can obtain debt verification from debt collectors. Thus, notations on your credit report can begin quickly.
Many large credit card companies do not charge-off debts until 180 days of no payments has passed. However, smaller creditors, local banks and credit unions may charge-off debts much quicker than this. As soon as charged-off debt is sent to a debt collection agency, the collector will take action to start collection efforts. Most collectors will attempt a variety of tactics before filing a lawsuit against you.
There are other factors that may result in quicker collection times, particularly when something out of the ordinary occurs on the account. For example, if the consumer makes significant purchases or obtains cash advances followed immediately by no payment, red flags will be raised.
If you are attempting to settle your debt with a collector, it may be possible to negotiate a settlement that includes credit reporting issues. One of our debt collection defense attorneys can assist you with this type of settlement and protect your credit rating as much as possible.
Whether it is a late payment, having your delinquent account turned over for collections, or having a lawsuit filed against you, major damage can be done to your credit score. Most creditors do not report payments that are 30 days late, but even one report of late payments can cause significant harm to your credit rating. A notation that your account is in collections or that a judgment has been entered against you is even more damaging. Thus, it is important to confer with a lawyer as soon as possible when you start struggling financially. The sooner we are involved the more likely you will obtain a positive result.
The attorneys at Fitzgerald Campbell represent debtors all over the State of California in debt settlement, collections harassment and credit card lawsuits. If you have a matter relating to a debt you owe, contact us today by calling 855-709-5788 for a consultation.